Transfers are part of everyday banking transactions. Above a certain limit, proof may be required. We’ll tell you when this happens.
As a private individual, you can make as many transfers as you like from your current account. There are two conditions. Firstly, your balance (or overdraft limit) must be sufficient, and secondly, you must not exceed the legally prescribed limit. In this case, you can still transfer money, but proof of origin may be required from the tax office. We will explain to you where this limit lies and what you need to pay attention to.
The Money Laundering Act stipulates that Deposits via 10.000 Euro are required to be reported. If you want to deposit 10,000 euros and then transfer it, you must prove the origin of the money. It is different if the money is already in your account, for example through savings, salary payments or other means. In this case, the bank knows the origin and no longer has to check it.
If the money transaction appears suspicious or an unusually high amount is transferred, the bank can report it to the tax office. In practice, this is often done if the recipient is on a terrorist list or if there are suspicions of illegal transactions.
Tipp: Remember that gifts of large sums of money are subject to gift tax. You should therefore report such receipts to the tax office yourself.
You can also make foreign transfers within your credit limit or balance in unlimited amounts. From a sum of 12.500 Euro However, the payment must be reported to the Deutsche Bundesbank. The basis for this is the AWV reporting obligation. AWV stands for Foreign Trade Ordinance. The report must be made by the recipient of the money. This is indicated on the bank statement. The Z4 reporting form can be found on the Website of the Deutsche Bundesbank.
Independently of the money laundering law, banks have their own transfer limits that apply to online banking as well as to transfers at the bank’s ATM. Depending on the bank, you can increase the limit or change it once. For transfers over 10,000 euros, it may be necessary to consult the bank. This is especially true if you have to prove the origin of the money.
